Freelance Rate Calculator
Calculate your ideal freelance hourly rate based on your current or desired annual salary. This calculator accounts for overhead costs, taxes, vacation, and sick days that employers typically cover.
As a freelancer, you need to cover self-employment taxes, health insurance, retirement, and have no paid time off. This calculator helps you set a rate that accounts for these costs.
Your Recommended Hourly Rate
Daily Rate
Weekly Rate
Monthly Rate
Calculation Breakdown
- • Working days per year:
- • Billable hours per year:
- • Salary with overhead:
How to Calculate Your Freelance Rate
When transitioning from full-time employment to freelancing, many professionals make the mistake of simply dividing their salary by 2,080 hours (40 hours × 52 weeks). This approach fails to account for the hidden costs that employers cover.
What Employers Pay Beyond Salary
- ✓ Health insurance (~$7,000-$20,000/year)
- ✓ Employer payroll taxes (~7.65%)
- ✓ Retirement contributions (~3-6%)
- ✓ Paid vacation & sick days
- ✓ Equipment & software
The Formula
Step 1: Salary × (1 + Overhead %)
Step 2: Calculate billable hours/year
Step 3: Divide adjusted salary by hours
Example: $75,000 × 1.30 = $97,500 ÷ 1,200 hours = $81.25/hour